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Compare Variable Rate Mortgages

Compare Variable Rate Mortgages - search a range of mortgage deals for first time buyers, people moving home and for those looking to remortgage - For the best mortgage rates see the table below or use our FREE Mortgage calculator above to compare the latest UK mortgage deals to speak to one of our mortgage advisers click here »

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 1.17%
Rate type: Fixed Aug-2019
Monthly cost: £390.48 per month
Max LTV: 60%
Product fee: £1720.00
Overall cost for comparison: 3.8% APRC
Post Office logo 1.17% Fixed Aug-2019 3.8% APRC 60% £1720.00 £390.48 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.17%
Rate type: Fixed Aug-2019
Monthly cost: £390.48 per month
Max LTV: 60%
Product fee: £1720.00
Overall cost for comparison: 3.8% APRC
Post Office logo 1.17% Fixed Aug-2019 3.8% APRC 60% £1720.00 £390.48 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.27%
Rate type: Fixed Aug-2019
Monthly cost: £393.21 per month
Max LTV: 75%
Product fee: £1220.00
Overall cost for comparison: 3.8% APRC
Post Office logo 1.27% Fixed Aug-2019 3.8% APRC 75% £1220.00 £393.21 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.27%
Rate type: Fixed Aug-2019
Monthly cost: £393.21 per month
Max LTV: 75%
Product fee: £1220.00
Overall cost for comparison: 3.8% APRC
Post Office logo 1.27% Fixed Aug-2019 3.8% APRC 75% £1220.00 £393.21 per month get quotes Call direct0808 178 6813 More details
Initial rate: 1.35%
Rate type: Fixed Aug-2019
Monthly cost: £396.95 per month
Max LTV: 75%
Product fee: £1220.00
Overall cost for comparison: 3.8% APRC
Post Office logo 1.35% Fixed Aug-2019 3.8% APRC 75% £1220.00 £500 cashback £396.95 per month get quotes Call direct0808 178 6813 More details
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Representative Example:

A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.

 

The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).

 

In this example the overall cost for comparison is 3.7% APRC representative.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Variable Rate Mortgages

The key feature of a variable rate mortgages is that the interest rate on the mortgage is subject to change over time. There are several types of mortgages that come under the umbrella term ‘variable rate’, including:

Standard variable rate mortgages

This kind of mortgage will charge an interest rate that follows your lender’s Standard Variable Rate (SVR). This is a rate of interest set by the lender that is usually broadly in line with the movements of the Bank of England Base Rate, so if the base rate goes up, the SVR is likely to also go up. However, mortgage lenders are not obliged to track the base rate with their SVR – it is set by them individually. As an example, if the Bank of England Base Rate went up by 0.5%, your lender could choose to increase the SVR by the same percentage, increase it by a higher or lower percentage, or take no action.

Advantages of a standard variable rate mortgage include:

  • Discounts – many lenders offer a discounted variable rate for a fixed period after the mortgage starts, which could offer the opportunity for lower monthly payments in the short term.
  • The opportunity to take advantage of low market rates – at the time of writing the base rate is at an historic, ongoing low of 0.5%, which broadly speaking means that mortgage interest rates are also relatively low.
  • Lower fees – arrangements fees tend to be lower for standard variable rate mortgages.
  • Early repayment charge exemption – standard variable rate mortgages may be easier to exit or overpay than other types of mortgage, as they may allow these actions without levelling a fee.

Disadvantages of a standard variable rate mortgage include:

  • Lack of predictability – rates may be at a current low, but there is no guarantee this will continue into the future. If rates rise, your payments will rise too, which could leave you struggling to make repayments each month. Increased affordability checks following the introduction of new lending regulations in April 2014 are intended to prevent this situation occurring, but the only sure way to avoid the possibility of rate increases is to opt for a fixed rate mortgage.
  • Standard variable rates do not usually offer the best deal – they tend to represent the interest rate you would be automatically moved to once any fixed rate or discounted deal ends, so it makes sense to shop around.

Base Rate tracker mortgages

Base rate tracker mortgages, as the name suggests, follow the Bank of England Base Rate. This Therefore, if the base rate goes up, your monthly payment rises. Likewise, payments fall if the base rate falls.

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Advantages of a base rate tracker mortgage:

  • Benefit from record low rates - Since March 2009 the base rate has been at a record low of 0.5%, which could make a base rate tracker mortgage seem an attractive option. However, watch out for collar rates (see below for details).
  • Choice of tracker period – many mortgage providers offer the flexibility to choose from tracker mortgages ranging from a few years to the entire life of the mortgage, so you can choose the type that best suits your lifestyle.

Disadvantages of a base rate tracker mortgage:

  • Risk of future base rate rise - be aware that the base rate is likely to rise again in the future (some experts predict this could occur by 2015), which would mean higher payments each month.
  • Collar rates – many mortgage lenders put a minimum level, known as a collar rate, on their base rate tracker mortgages. This means that if the base rate goes below the collar rate, your mortgage interest rate won’t go down any further.

If you are looking for a variable rate mortgage deal, try out our free mortgage calculator to help you get a sense of what is on offer – we search over 5,000 of the best mortgage deals on the market so you don’t have to or to speak to one of our mortgage advisers click here »

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